UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2019~~March 31, 2020

¨☐	TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934

For the transition period from ___________ to ____________

Commission File Number 000-29935

CROWN EQUITY HOLDINGS INC.

(Exact name of registrant as specified in its charter)

Nevada

33-0677140

(State or other jurisdiction of

incorporation or organization)

(IRS Employer

Identification No.)

11226 Pentland Downs Street, Las Vegas, NV 89141

(Address of principal executive offices)

(702) 683-8946

(Issuer’s telephone number)

Indicate by check mark whether the Company (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days: Yes ¨ ☐ No ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2of the Exchange Act.

Large accelerated filer	¨☐	Accelerated filer	¨☐
Non-accelerated filer	¨☐	Smaller reporting company	x☒
		Emerging growth company	¨☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨☐

Indicate by check mark whether the Company is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☒ No ¨☐

As of ~~March 24,~~July 14, 2020, the number of shares outstanding of the registrant’s class of common stock was ~~11,806,766.~~ 12,202,260.

TABLE OF CONTENTS

		Page
PART I: FINANCIAL INFORMATION		3

Item 1.	Financial Statements (Unaudited)		3

	Condensed ~~Consolidated~~ Balance Sheets as of ~~September 30, 2019~~March 31, 2020 (Unaudited) and December 31, ~~2018 (Unaudited)~~2019 (Audited)	4

	Condensed ~~Consolidated~~ Statements of Operations for the Three Months Ended March 31, 2020 and ~~Nine months Ended September 30,~~ 2019 ~~and 2018~~ (Unaudited)	5

	Condensed ~~Consolidated~~ Statements of Changes in Stockholders’ Deficit for the Three Months Ended March 31, 2020 and ~~Nine months Ended September 30,~~ 2019 ~~and 2018~~ (Unaudited)	6

	Condensed ~~Consolidated~~ Statements of Cash Flows for the ~~Nine months~~Three Months Ended ~~September 30,~~March 31, 2020 and 2019 ~~and 2018~~ (Unaudited)	7	8

	Notes to Condensed ~~Consolidated~~ Financial Statements (Unaudited)	98

Item 2.	Management’s Discussion and Analysis and Plan of Operation	1820

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	1921

Item 4T.	Controls and Procedures	1921

PART II: OTHER INFORMATION		2022

Item 1.	Legal Proceedings	2022

Item 1A.	Risk Factors	2022

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2022

Item 3.	Defaults upon Senior Securities	2022

Item 4.	Mine Safety Information	2022

Item 5.	Other Information	2022

Item 6.	Exhibits	2123

Signatures		2224

Table of Contents

PART I. FINANCIAL INFORMATION

DEFINITIONS

In this Quarterly Report on Form 10-Q, the words “Crown Equity”, the “Company”, the “Registrant”, “we”, “our”, “ours” and “us” refer to Crown Equity Holdings, Inc.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q includes certain statements that may be deemed “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, all of which are based upon various estimates and assumptions that the Company believes to be reasonable as of the date hereof. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “seek,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” the negative of such terms or other comparable terminology. These statements involve risks and uncertainties that could cause the Company’s actual future outcomes to differ materially from those set forth in such statements. Such risks and uncertainties include, but are not limited to:

	•	the possibility that certain tax benefits of our net operating losses may be restricted or reduced in a change in ownership or a further change in the federal tax rate;

	•	the inability to carry out plans and strategies as expected

	•	limitations on the availability of sufficient credit or cash flow to fund our working capital needs and capital expenditures and debt service;

	•	difficulty in fulfilling the terms of our convertible note payables, which could result in a default and acceleration of our indebtedness under our convertible note payables;

	•	the possibility that we issue additional shares of common stock or convertible securities that will dilute the percentage ownership interest of existing stockholders and may dilute the book value per share of our common stock;

	•	the relatively low trading volume of our common stock, which could depress our stock price;

	•	competition in the industries in which we operate, both from third parties and former employees, which could result in the loss of one or more customers or lead to lower margins on new projects;

	•	a general reduction in the demand for our services;

	•	our ability to enter into, and the terms of, future contracts;

	•	uncertainties inherent in estimating future operating results, including revenues, operating income or cash flow;

	•	complications associated with the incorporation of new accounting, control and operating procedures;

	•	the recognition of tax benefits related to uncertain tax positions;

You should understand that the foregoing, as well as other risk factors discussed in this document and in Part I, of our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2018,~~2019, could cause future outcomes to differ materially from those experienced previously or those expressed in such forward-looking statements. We undertake no obligation to publicly update or revise any information, including information concerning our controlling shareholder, net operating losses, borrowing availability or cash position, or any forward-looking statements to reflect events or circumstances that may arise after the date of this report. Forward-looking statements are provided in this Quarterly Report on Form 10-Q pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of the estimates, assumptions, uncertainties and risks described herein.

Table of Contents

~~CROW~~Crown Equity Holdings Inc.~~N EQUITY HOLDINGS INC.~~

CONDENSED CONSOLIDATED ~~BALAN~~CEBALANCE SHEETS

		Sept 30, 2019			Dec 31, 2018				Mar 31, 2020			Dec 31, 2019
		(Unaudited)							(Unaudited)
Assets	Assets							Assets
Current assets
Cash		$	7,324		$	13,294			$	3,260		$	997
Total Current Assets			7,324			13,294				3,260			997

Property and Equipment, net			36,938			50,565				20,849			28,882
Total Assets		$	44,262		$	63,859			$	24,109		$	29,879

Liabilities and Stockholders’ Deficit	Liabilities and Stockholders’ Deficit							Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable and accrued expenses		$	212,173		$	207,125			$	201,163		$	210,223
Accounts payable and accrued expenses to related party			87,416			61,156				22,892			80,664
Deferred revenue – Related Party			-			50,000
Convertible notes payable to related parties, net of discount			760			13,040				5,000			760
Convertible notes payable, net of discount			-			8,498				17,633			-
Finance lease obligation, current			24,214			10,403				31,047			30,681
Total Current Liabilities			324,563			350,222			$	277,735		$	322,328

Non-Current liabilities
Finance lease obligation, long term			28,410			42,879
Long-term debt										20,299			25,976
Total Liabilities			352,973			393,101			$	298,034			348,304

Stockholders’ deficit
Preferred Stock, 20,000,000 shares authorized, authorized at $0.001 par value, none issued or outstanding			-			-				-			-
Series A Convertible Preferred Stock, $0.001 par value, 1,000 shares authorized, 1,000 issued and outstanding			1			1				1			1
Common Stock, 450,000,000 authorized at $0.001 par value; 12,052,766 and 11,823,389 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively			12,052			11,823
Common Stock, 450,000,000 authorized at $0.001 par value; 12,160,118 and 11,766,766 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively										12,159			11,766
Stock Payable			37,512			18,756				1,500			43,764
Additional paid-in capital			11,410,817			11,279,211				11,986,012			11,418,103
Accumulated deficit			(11,769,093	)		(11,639,033	)			(12,273,597	)		(11,792,059	)
Total stockholders’ deficit			(308,711	)		(329,242	)			(273,925	)		(318,425	)
Total liabilities and stockholders’ deficit		$	44,262		$	63,859			$	24,109		$	29,879

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

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~~CROWN EQUITY HOLDINGS, INC.~~Crown Equity Holdings, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Nine Months Ended						Three Months Ended
	Sept 30,						Sept 30,						March 31,
	2019			2018			2019			2018			2020			2019

Revenue	$	419		$	226		$	3,464		$	2,912		$	577		$	682
Revenue – related party		-			1,000			50,000			7,100			-			-
Total Revenue		419			1,226			53,464			10,012			577			682

Operating expenses
Depreciation		8,056			7,224			23,612			21,670			8,033			7,501
General and Administrative		41,973			132,450			108,701			206,831			43,395			33,453
Total Operating Expenses		50,029			139,674			132,313			228,501			51,428			40,954

Net Operating Income (Loss)		(49,610	)		(138,448	)		(78,849	)		(218,409	)		(50,851	)		(40,272	)

Other expense
Other (expense)
Interest expense		(3,644	)		(2,116	)		(12,291	)		(7,875	)		(3,700	)		(4,839	)
Amortization of beneficial conversion feature		-			(3,882	)		(38,920	)		(10,827	)		-			(12,318	)
Loss on AP Settlement – related party														(426,987	)		-
Total other expense		(3,644	)		(5,988	)		(51,211	)		(18,702	)		(430,687	)		(17,157	)

Net (loss)	$	(53,254	)	$	(144,446	)	$	(130,060	)	$	(237,191	)	$	(481,538	)		(57,429	)

Net (loss) per common share – basic and diluted	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.02	)	$	(0.04	)		(0.00	)

Weighted average number of common shares outstanding - basic and diluted		11,889,981			11,561,237			11,909,339			11,500,742			12,006,830			11,830,192

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

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CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN ~~STOCKHOLDERS’~~STOCKHOLDERS’ DEFICIT

(Unaudited)

For the Three ~~months~~Months Ended ~~September 30, 2019~~March 31, 2020

Preferred Stock

Common Stock

Common
Stock

Additional
Paid-In

Accumulated

Total
Stockholders'

Shares

Amount

Shares

Amount

Payable

Capital

Deficit

(Deficit)

Balances at June 30, 2019

1,000

$ 1

11,952,766

$ 11,952

$ 51,260

$ 11,360,917

$ (11,715,839 )

$ (291,709 )
Common stock issued for cash

-

-

100,000

100

(20,000 )

49,900

-

30,000

Common Stock Subscribed for services

-

-

-

-

6,252

-

-

6,252

Net loss

-

-

-

-

-

-

(53,254 )

(53,254 )
Balances at Sept 30, 2019

1,000

$ 1

12,052,766

$ 12,052

$ 37,512

$ 11,410,817

$ (11,769,093 )

$ (308,711 )

	Preferred Stock				Common Stock				Common Stock			Additional Paid-In		Accumulated			Total Stockholders'
	Shares		Amount		Shares		Amount		Payable			Capital		Deficit			(Deficit)

Balances at December 31, 2019		1,000	$	1		11,766,766	$	11,766	$	43,764		$	11,418,103	$	(11,792,059	)	$	(318,425	)
Common stock issued for cash		-		-		40,000		40		-			19,960		-			20,000
Common Stock Subscribed for services – related party		-		-		148,419		148		(42,264	)		49,868		-			7,752
Settlement of AP – related party		-		-		204,933		205		-			63,819		-			64,024
Warrant Subscriptions		-		-		-		-		-			75		-			75
Loss on AP Settlement – related party		-		-		-		-		-			426,987		-			426,987
Forgiveness of AP by CEO		-		-		-		-		-			7,200		-			7,200
Net loss		-		-		-		-		-			-		(481,538	)		(481,538	)
Balances at March 31, 2020		1,000	$	1		12,160,118	$	12,159	$	1,500		$	11,986,012	$	(12,273,597	)	$	(273,925	)

For the ~~Nine months~~Three Months Ended ~~September 30,~~March 31, 2019

Preferred Stock

Common Stock

Common
Stock

Additional
Paid-In

Accumulated

Total
Stockholders'

Shares

Amount

Shares

Amount

Payable

Capital

Deficit

(Deficit)

Balances at December 31, 2018

1,000

$ 1

11,823,389

$ 11,823

$ 18,756

$ 11,279,211

$ (11,639,033 )

$ (329,242 )
Notes Payable and Accrued Interest Converted to Common Stock

-

-

113,377

113

-

56,782

-

56,895

Common stock issued for cash

-

-

116,000

116

-

57,844

-

57,960

Common Stock Subscribed for services

-

-

-

-

18,756

-

-

18,756

Forgiveness of Interest – Related Party

-

-

-

-

-

9,282

-

9,282

Compensation Expense

-

-

-

-

-

7,698

-

7,698

Net loss

-

-

-

-

-

-

(130,060 )

(130,060 )
Balances at Sept 30, 2019

1,000

$ 1

12,052,766

$ 12,052

$ 37,512

$ 11,410,817

$ (11,769,093 )

$ (308,711 )

~~Table of Contents~~

~~For the Three months Ended September 30, 2018~~

Preferred Stock

Common Stock

Common Stock

Additional
Paid-In

Accumulated

Total
Stockholders'

Shares

Amount

Shares

Amount

Payable

Capital

Deficit

(Deficit)

Balance, June 30, 2018

1,000

$ 1

11,489,389

$ 11,489

$ 20,362

$ 11,053,877

$
(11,356,958
)

$
(271,229
)
Common stock issued for services

-

-

310,000

310

(7,858 )

89,416

-

81,868

Debt Discount

-

-

-

-

-

631

-

631

Common Stock Payable

-

-

-

-

- 10,000

-

-

10,000

Net loss

-

-

-

-

-

(144,446 )

(144,446
)
Balance, Sept 30, 2018

1,000

$ 1

11,799,389

$ 11,799

$ 22,504

$ 11,143,924

$
(11,501,404
)

$
(323,176
)

~~For the Nine months Ended September 30, 2018~~

Preferred Stock

Common Stock

Common Stock

Additional
Paid-In

Accumulated

Total
Stockholders'

Shares

Amount

Shares

Amount

Payable

Capital

Deficit

(Deficit)

Balance, December 31, 2017

1,000

$ 1

11,461,137

$ 11,461

$ -

$ 11,029,958

$ (11,264,213 )

$ (222,793 )
Common stock issued for services

-

-

316,252

316

-

95,662

-

95,978

Common stock issued for cash

-

-

22,000

22

-

10,978

-

11,000

Debt Discount

-

-

-

-

-

7,326

-

7,326

Common stock payable

-

-

-

-

22,504

-

-

22,504

Net loss

-

-

-

-

-

-

(237,191 )

(237,191 )
Balance, Sept 30, 2018

1,000

$ 1

11,799,389

$ 11,799

$ 22,504

$ 11,143,924

$ (11,501,404 )

$ (323,176 )

~~The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements~~

~~Table of Contents~~

~~CROWN EQUITY HOLDINGS, INC.~~

~~CONDENSED CONSOLIDATED STATEMENTS OF~~ ~~CASH FLOWS~~

~~(Unaudited)~~

Nine months Ended

Sept 30,

2019

2018

Cash flows from operating activities

Net loss

$ (130,060 )

$ (237,191 )
Adjustments to reconcile net loss to net cash used in operating activities:

Non-cash Compensation Expense

26,454

118,482

Depreciation

23,612

21,670

Amortization of beneficial conversion feature

38,920

10,827

Changes in operating assets and liabilities:

Deferred revenue

(50,000 )

50,000

Accounts payable and accrued expenses – related party

26,430

(20,313 )
Accounts payable and accrued expenses

14,329

8,211

Net cash (used in) operating activities

(50,315 )

(7,687 )

Cash used in financing activities

Purchase of property and equipment

-

-

Net cash (used in) operating activities

-

-

Cash flows from financing activities

Payments on convertible notes payable, related party

(3,011 )

(6,783 )
Borrowings from convertible notes payable, related party

-

4,326

Borrowings from convertible notes payable

-

3,000

Proceeds from Sale of Stock

57,960

11,000

Payments on notes payable

(10,604 )

(3,628 )
Net cash provided by financing activities

44,345

7,915

Net increase (decrease) in cash

(5,970 )

228

Cash, beginning of period

13,294

1,862

Cash, end of period

$ 7,324

$ 2,090

Supplemental disclosure of cash flow information

Interest paid

$ 7,905

$ 7,326

Income taxes paid

-

-

Non-Cash Transactions

Beneficial conversion feature discount on convertible notes

$ -

$ 6,695

Forgiveness of Interest – Related Party

9,282

-

Purchase of fixed assets through finance lease

9,985

-

Debt converted to common stock

56,895

-

	Preferred Stock				Common Stock				Common Stock		Additional Paid-In		Accumulated			Total Stockholders'
	Shares		Amount		Shares		Amount		Payable		Capital		Deficit			(Deficit)

Balances at December 31, 2018		1,000	$	1		11,823,389	$	11,823	$	18,756	$	11,279,211	$	(11,639,033	)	$	(329,242	)
Notes Payable and Accrued Interest Converted to Common Stock		-		-		23,377		23		-		13,176		-			13,199
Common stock issued for cash		-		-		10,000		10		-		4,990		-			5,000
Common Stock Subscribed for services		-		-		-		-		6,252		-		-			6,252
Forgiveness of Interest – Related Party		-		-		-		-		-		9,282		-			9,282
Compensation Expense		-		-		-		-		-		7,698		-			7,698
Net loss		-		-		-		-		-		-		(57,429	)		(57,429	)
Balances at March 31, 2019		1,000	$	1		11,856,766	$	11,856	$	25,008	$	11,314,357	$	(11,696,462	)	$	(345,240	)

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

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CROWN EQUITY HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three months Ended
	March 31,
	2020			2019
Cash flows from operating activities
Net loss	$	(481,538	)	$	(57,429	)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for services		7,752			13,950
Depreciation		8,033			7,501
Loss on AP Settlement		426,987			-
Amortization of beneficial conversion feature		-			12,318
Changes in operating assets and liabilities:
Deferred revenue		-			-
Accounts payable and accrued expenses – related party		(57,772	)		5,252
Accounts payable and accrued expenses		79,797			5,708
Net cash (used in) operating activities		(16,741	)		(12,700	)

Cash used in financing activities		-			-

Cash flows from financing activities
Payments on convertible notes payable, related party		(760	)		(1,300	)
Borrowings from convertible notes payable, related party		5,000			-
Proceeds from Sale of Stock		20,000			5,000
Principal payments on debt		(5,311	)		(2,714	)
Warrant subscriptions		75			-
Net cash provided by financing activities		19,004			986

Net increase (decrease) in cash		2,263			(11,714	)
Cash, beginning of period		997			13,294
Cash, end of period	$	3,260		$	1,580

Supplemental disclosure of cash flow information
Interest paid	$	3,700		$	2,022
Income taxes paid		-			-

Non-Cash Transactions
Forgiveness of AP by CEO	$	7,200		$	-
Forgiveness of Interest – Related Party		-			9,282
Purchase of fixed assets through finance lease		-			9,985
Debt converted to common stock		-			13,199
Convertible debt for payment of AP		17,633			-
RP-AP Converted into common stock		64,024			-
Shares issued for stock payable		43,764			-

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

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CROWN EQUITY HOLDINGS, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – NATURE OF BUSINESS AND SUMMARY OF ACCOUNTING POLICIES

Nature of Business

Crown Equity Holdings Inc. ("Crown Equity" or the "Company") was incorporated in August 1995 in Nevada. The Company offers through its digital network of websites, advertising branding, marketing solutions and other services to boost customer awareness, as well as merchant visibility as a worldwide online multi-media publisher. The Company focuses on the distribution of information for the purpose of bringing together its audience with the advertisers that want to reach them. Its advertising services cover and connect a range of marketing specialties, as well as provide search engine optimization for clients interested in online media awareness. Crown Equity Holdings' objective is making its endeavor known as CRWE WORLD into a global online news and information source, as well as a global one stop shop for various distinct products and services. The Company also offers services to companies seeking to become public entities in the United States, as well as providing various consulting services to companies and individuals dealing with corporate structure and operations globally.

On January 27, 2020, the Company re-acquired from AVOT the online business iB2BGlobal.com and since company had not received the shares promised during the original sale.

Basis of Preparation

The accompanying ~~consolidated~~ financial statements include the financial information of Crown Equity Holdings Inc. (“Crown Equity”, the “Company”) have been prepared in accordance with the instructions to financial reporting as prescribed by the Securities and Exchange Commission (the “SEC”). The preparation of these ~~consolidated~~ financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”). In the opinion of management, the ~~consolidated~~ financial statements contained in this report include all known accruals and adjustments necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods reported herein.

Reclassifications

Certain prior period amounts have been reclassified to conform to current period presentation.

Adoption of New Accounting Standard

In February 2016, the FASB issued ASU 2016-02 “Leases”, which is codified in ASC 842 “Leases” and supersedes current lease guidance in ASC 840. These provisions require lessees to put a right-of-use asset and lease liability on their balance sheet for operating and financing leases that have a term of more than one year. Expense will be recognized in the income statement similar to current accounting guidance. For lessors, the ASU modifies the classification criteria and the accounting for sales-type and direct financing leases. Entities will need to disclose qualitative and quantitative information about their leases, including characteristics and amounts recognized in the financial statements. These provisions are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We adopted the provisions on January 1, 2019, including interim periods subsequent to the date of adoption. Entities are required to use a modified retrospective approach upon adoption to recognize and measure leases at the beginning of the earliest comparative period presented in the financial statements. Since all the leases were finance leases, there was no effect on the financial statements when ASC 842 was adopted.

In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation, to simplify the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payments for employees, with certain exceptions. Under the new guidance, the cost for nonemployee awards may be lower and less volatile than under current US GAAP because the measurement generally will occur earlier and will be fixed at the grant date. This update is effective for annual financial reporting periods, and interim periods within those annual periods, beginning after December 15, 2018, although early adoption is permitted. The Company adopted the standard effective January 1, 2019 and found the adoption did not have a material effect on our financial statements.

Crown Equity does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on their financial position, results of operations or cash flows.

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Accounting Standards not yet Adopted

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires measurement and recognition of expected credit losses for financial assets held. ASU 2016-13 is effective for us in our first quarter of fiscal 2023, and earlier adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2016-13 on our ~~consolidated~~ financial statements.

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Use of Estimates

The preparation of financial statements in conformity with GAAP requires the use of estimates and assumptions by management in determining the reported amounts of assets and liabilities, disclosures of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are primarily used in our revenue recognition, long-lived asset impairments and adjustments, deferred tax, stock-based compensation, and reserves for legal matters.

Cash and Cash Equivalents

Crown Equity considers all highly liquid investments purchased with an original maturity of three months or less to be cash and cash equivalents.

Stock-Based Compensation

The Company accounts for stock-based compensation to employees in accordance with ASC 718 requiring employee equity awards to be accounted for under the fair value method. Accordingly, share-based compensation is measured at grant date, based on the fair value of the award and is recognized as expense over the requisite employee service period. The Company accounts for stock-based compensation to other than employees in accordance with ASC 505-50. Equity instruments issued to other than employees are valued at the earlier of a commitment date or upon completion of the services, based on the fair value of the equity instruments and is recognized as expense over the service period. The Company estimates the fair value of share-based payments using the Black-Scholes option-pricing model for common stock options and the closing price of the company's common stock for common share issuances.

Revenue Recognition

The core principles of revenue recognition under ASC 606 include the following five criteria:

	1.	Identify the contract with the customer

		Contract with our customers may be oral, written, or implied. A written and signed invoice stating the terms and conditions is the Company’ preferred method. The terms of a written contract may be contained within the body of an invoice or in an email. No work is commenced without an understanding between the Company and our client that a valid contract exists.

	2.	Identify the performance obligations in the contract

		Our sales and account management teams define the scope of services to be offered, to ensure all parties are in agreement and obligations are being delivered to the customer as promised. The performance obligation may not be fully identified in a mutually signed contract, but may be outlined in email correspondence, face-to-face meetings, additional proposals or scopes of work, or phone conversations.

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	3.	Determine the transaction price

		Pricing is discussed and identified by the operations team prior to submitting an invoice to the customer.

	4.	Allocate the transaction price to the performance obligations in the contract

		If a contract involves multiple obligations, the transaction pricing is allocated accordingly, during the performance obligation phase.

Recognize revenue when (or as) we satisfy a performance obligation

The Company uses digital marketing that includes digital advertising, SEO management and digital ad support. We provide whether presenting a vibrant but simple message about our clients that will enlighten their audience or deploying an influential digital marketing campaign on our online site or across one or multiple social media platforms. Revenue is recognized when ads are run on Company’s advertising platform.

The company generates analytical reports monthly or as required to show how the ad dollars were spent and how the targeting resulted in click-through. The report satisfies the performance obligation, regardless of the outcome or effectiveness of the campaign.

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Sales are recognized when promised services are started in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Sales for service contracts generally are recognized as the services are being provided.

	Nine Months Ended Sept 30, 2019						Nine Months Ended Sept 30, 2018						Three Months Ended Mar 31, 2020						Three Months Ended Mar 31, 2019
	Third Party		Related Party		Total		ThirdParty		Related Party		Total		Third Party		Related Party		Total		Third Party		Related Party		Total
Advertising	$	2,000	$	50,000	$	52,000	$	-	$	-	$	-

IT Services on Company Server	$	-	$	-	$	-	$	-	$	7,000	$	7,000	$	-	$	-	$	-	$	-	$	-	$	-
Click Based and Impressions Ads	$	614	$	-	$	614	$	1,679	$	-	$	1,679		222		-		222		122		-		122
Domain Registrations	$	10	$	-	$	10	$	47	$	-	$	47		-		-		-		10		-		10
Publishing and Distribution	$	840	$	-	$	840	$	300	$	100	$	400		355		-		355		550		-		550
Server	$	-	$	-	$	-	$	886	$	-	$	886		-		-		-		-		-		-
	$	3,464	$	50,000	$	53,464	$	2,912	$	7,100	$	10,012	$	577	$	-	$	577	$	682	$	-	$	682

Revenue is based on providing through the Company’s server services, Managed Information Technology, 24/7 support, which includes designing, developing, testing, maintaining functionality, infrastructure monitoring, managing and hosting, combined with revenue received from the display of click based and impressions ads located on the Company’s websites, domain name registration, publishing and distribution of news and press releases.

Sept 30, 2019

Dec 31, 2018

Deferred Revenue

$ -

$ 50,000

	Mar 31,		Mar 31,
	2020		2019

Deferred Revenue	$	-	$	50,000

Deferred revenue is based on cash received or billings in excess of revenue recognized until revenue recognition criteria are met. Client prepayments are deferred and recognized over future periods as services are delivered or performed.

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Accounts Receivable and Allowance for Doubtful Accounts

The Company establishes an allowance for bad debts through a review of several factors including historical collection experience, current aging status of the customer accounts, and financial condition of our customers. The Company does not generally require collateral for our accounts receivable. There were no accounts receivable and allowance for doubtful accounts as of ~~September 30, 2019~~March 31, 2020 and December 31, ~~2018.~~2019.

Risk Concentrations

The Company does not hold cash in excess of federally insured limits.

~~As of September 30,~~During the period ending March 31, 2020 and 2019, ~~97%~~100% of the Company’s ~~revenues were received through advertisements, which 95% of the advertisement revenue was received through a related party. The remaining 3% of the remaining total~~ revenues were from third parties for the displaying of click based and impressions ads located on the company’s websites, as well as for press releases and article publishing and distribution by the Company.

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General and Administrative Expenses

Crown Equity's general and administrative expenses consisted of the following types of expenses during ~~2019~~2020 and ~~2018:~~2019: Compensation expense, ~~payroll expense, rent,~~auto, travel and entertainment, legal and accounting, utilities, web sites, office expenses, depreciation and other administrative related expenses.

Property and Equipment

Property and equipment are carried at the cost of acquisition or construction and depreciated over the estimated useful lives of the assets. Costs associated with repair and maintenance are expensed as incurred. Costs associated with improvements which extend the life, increase the capacity or improve the efficiency of our property and equipment are capitalized and depreciated over the remaining life of the related asset. Gains and losses on dispositions of equipment are reflected in operations. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

Impairment of Long-Lived Assets

The Company reviews the carrying value of its long-lived assets annually or whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the asset by comparing the undiscounted future net cash flows expected to result from the asset to its carrying value. If the carrying value exceeds the undiscounted future net cash flows of the asset, an impairment loss is measured and recognized. An impairment loss is measured as the difference between the net book value and the fair value of the long-lived asset. Fair value is determined based on either expected future cash flows at a rate we believe incorporates the time value of money. No indications of impairments were identified in ~~2019~~2020 or ~~2018.~~2019.

Basic and Diluted Net (Loss) per Share

	Nine months Sept 30, 2019			Nine months Sept 30, 2018			Three Months Mar 31, 2020			Three Months Mar 31, 2019
Numerator:
Net (Loss) attributable to common shareholders of Crown Equity Holdings, Inc.	$	(130,060	)	$	(237,191	)	$	(481,538	)	$	(57,429	)
Net (Loss) attributable to Crown Equity Holdings, Inc.	$	(130,060	)	$	(237,191	)	$	(481,538	)	$	(57,429	)

Denominator:
Weighted average common and common equivalent shares outstanding – basic and diluted		11,909,339			11,500,742			12,006,830			11,830,192

Earnings (Loss) per Share attributable to Crown Equity Holdings, Inc.:
Basic	$	(0.01	)	$	(0.02	)	$	(0.04	)	$	(0.00	)
Diluted	$	(0.01	)	$	(0.02	)	$	(0.04	)	$	(0.00	)

When an entity has a net loss, it is prohibited from including potential common shares in the computation of diluted per share amounts. Accordingly, we have utilized basic shares outstanding to calculate both basic and diluted loss per share for the periods ended ~~September 30, 2019~~March 31, 2020 and ~~2018.~~2019. The number of potential anti-dilutive shares excluded from the calculation shares for the period ended ~~September 30, 2019~~March 31, 2020 is ~~1,520.~~3,001,520.

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Income Taxes

In December 2017, the Tax Cuts and Jobs Act (the “Act”) was enacted, which, among other changes, reduced the federal statutory corporate tax rate from 35% to 21%, effective January 1, 2018. As a result of this change, the Company’s statutory tax rate for fiscal ~~2018~~2019 and ~~2019~~2020 will be 21%. Crown Equity recognizes deferred tax assets and liabilities based on differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that are expected to be in effect when the differences are expected to be recovered. As of ~~September 30, 2019,~~March 31, 2020, and December 31, ~~2018,~~2019, the Company has not reflected any amounts as a deferred tax asset due to the uncertainty of future profits to offset any net operating loss.

The Company’s deferred tax assets consisted of the following as of ~~September 30, 2019~~March 31, 2020 and December 31, ~~2018:~~2019:

Sept 30, 2019

Dec 31, 2018

Net operating loss

$ 418,961

$ 399,821

Valuation allowance

$ (418,961 )

(399,821 )
Net deferred tax asset

-

-

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	Mar 31, 2020			Dec 31, 2019
Net operating loss	$	426,743		$	416,916
Valuation allowance		( 426,743	)		(416,916	)
Net deferred tax asset		-			-

Uncertain tax position

The Company also follows the guidance related to accounting for income tax uncertainties. In accounting for uncertainty in income taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. No liability for unrecognized tax benefits was recorded as of ~~September 30, 2019~~March 31, 2020 and December 31, ~~2018.~~2019.

Fair Value of Financial Instruments

The Company's financial instruments consist of cash and cash equivalents, accounts payable and debt. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these ~~consolidated~~ financial statements.

Research and Development

The Company spent no money for research and development cost for the periods ended ~~September 30, 2019~~March 31, 2020 and December 31, ~~2018.~~2019.

Advertising Cost

The Company spent $0 for advertisement for the periods ended ~~September 30, 2019~~March 31, 2020 and ~~2018.~~2019.

NOTE 2 – GOING CONCERN

As shown in the accompanying condensed consolidated financial statements, Crown Equity has an accumulated deficit of ~~$11,769,093~~$12,273,597 since its inception and had a working capital deficit of ~~$317,239,~~$274,475, negative cash flows from operations and limited business operations as of ~~September 30, 2019.~~March 31, 2020. These conditions raise substantial doubt as to Crown Equity's ability to continue as a going concern. The ~~consolidated~~ financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern.

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Crown Equity continues to review its expense structure reviewing costs and their reduction to move towards profitability. Management plans to continue raising funds through debt and equity financing to grow the business to profitability. This financing may be insufficient to fund expenditures or other cash requirements. There can be no assurance that additional financing will be available to the Company on acceptable terms or at all. These financial statements do not give effect to adjustments to assets would be necessary for the Company be unable to continue as going concern.

NOTE 3 – PROPERTY AND EQUIPMENT

The Company’s policy is to capitalize all property purchases over $1,000 and depreciates the assets over their useful lives of 3 to 7 years.

Property consists of the following at ~~September 30, 2019~~March 31, 2020 and December 31, ~~2018:~~2019:

	Sept 30, 2019			Dec 31, 2018			Mar 31, 2020			Dec 31, 2019
Computers – 3 year estimated useful life	$	107,669		$	97,684		$	96,669		$	96,669
Less – Accumulated Depreciation		(70,731	)		(47,119	)		(75,820	)		(67,787	)
Property and Equipment, net	$	36,938		$	50,565		$	20,849		$	28,882

Depreciation has been provided over each asset’s estimated useful life. Depreciation expense was ~~$23,612,~~$8,033, and ~~$21,670~~$7,501 for the ~~nine~~three months ended ~~September 30,~~March 31, 2020 and 2019, ~~and 2018,~~ respectively.

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NOTE 4 – FINANCE LEASES

During 2019, ~~and 2018,~~ the Company borrowed an aggregate $9,985 ~~and $58,047~~ under the following third-party and related party finance lease transactions:

•	A $1,505 note from a third party for the lease of fixed assets, bearing interest at 17%, amortized over 36 months with monthly payments of $54. The lease has a bargain purchase option of $1 at the end of the lease term.
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•	A $1,542 note from a third party for the lease of fixed assets, bearing interest at 17%, amortized over 60 months with monthly payments of $1,186. The lease has a bargain purchase option of $1 at the end of the lease term.

•	A $9,985 note from a third party for the lease of fixed assets, bearing interest at 22%, amortized over 24 months with a payments of $498 in additional to a $22 management fee for a total monthly payment of $520. The lease has a bargain purchase option of $1 at the end of the lease term.

The following is a schedule of the net book value of the finance lease.

Assets	Sept 30, 2019			Mar 31, 2020
Leased equipment under finance lease,	$	96,669		$	96,669
less accumulated amortization		(59,731	)		(75,820	)
Net	$	36,938		$	20,849

Liabilities	Sept 30, 2019		Mar 31, 2020
Obligations under finance lease (current)	$	24,214	$	31,047
Obligations under finance lease (noncurrent)		28,410		20,299
Total	$	52,624	$	51,346

Below is a reconciliation of leases to the financial statements.

	Finance Leases		Finance Leases
Leased asset balance	$	36,938	$	20,849
Liability balance		52,624		51,346
Cash flow (operating)		-		-
Cash flow (financing)		10,004		-
Interest expense	$	4,243	$	3,700

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The following is a schedule, by years, of future minimum lease payments required under finance leases.

Years ended December 31	Finance Leases

2019 *		~~5,216~~
2020		~~27,974~~28,585
2021		~~15,938~~15,726
2022		11,860
Thereafter		-
Total		~~60,988~~56,171
Less: Imputed Interest		~~(8,364~~	(4,825	)
Total Liability		~~52,624~~51,346

*Excludes nine months ended September 30, 2019

Other information related to leases is as follows:

Lease Type		Weighted Average Remaining Term		Weighted Average Discount Rate (1)
Finance Leases			2.03 years				16	%

Based on average interest rate of 16%, average term remaining (months) ~~24.33~~21.03 Average term remain (years) 2.03

(1) This discount rate is consistent with our borrowing rates from various lenders.

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NOTE 5 – NOTES PAYABLE AND CONVERTIBLE NOTE PAYABLES

During fiscal year ended 2018, third party convertible note payables of $8,531 were not settled for cash or through the issuance of common stock shares. During the nine-month period of September 30, 2019, third party convertible note payables of $8,531 and related party notes of $48,155 and accrued interest of $209 were converted at $0.50 per share.

As of ~~September 30, 2019,~~March 31, 2020, and December 31, ~~2018,~~2019, the Company had unamortized discount of $0 and ~~$38,920~~$0 respectively.

The Company analyzed the below convertible notes for derivatives noting none.

	Original	Due	Interest			Conversion		Sept 30,		Original	Due	Interest			Conversion		Mar 31,
Name	Note Date	Date	Rate			Rate		2019		Note Date	Date	Rate			Rate		2020

Related Party:
Mike Zaman	11/30/2017	11/30/2018		12	%	$	0.50		17	01/19/2018	01/19/2019		12	%	$	0.50		-
Mike Zaman	01/19/2018	01/19/2019		12	%	$	0.50		450
Montse Zaman	06/07/2018	06/07/2019		12	%	$	0.50		293	03/25/2020	03/25/2021		12	%	$	-		5,000
Total Convertible Related Party Notes Payable									760									5,000
Less: Debt Discount									-									-
Convertible Notes Payable, net of Discount - Related Party									760									5,000

Third Party:
Willy A. Saint-Hilaire										02/27/2020	02/27/2021		12	%	$	-		14,500
Willy A. Saint-Hilaire										03/08/2020	03/08/2021		12	%	$	-		1,581
Willy A. Saint-Hilaire										03/24/2020	03/24/2021		12	%	$	-		500
Willy A. Saint-Hilaire										03/24/2020	03/24/2021		12	%	$	-		400
Willy A. Saint-Hilaire										03/24/2020	03/24/2021		12	%	$	-		652
Total Convertible Third Party Notes Payable																		17,633
Less: Debt Discount																		-
Convertible Notes Payable, net of Discount -
Third Party																		17,633

~~OCHC, LLC~~

On August 11, 2018, October 2, 2018, October 24, 2018, November 16, 2018 and December 4, 2018, the Company entered into convertible promissory notes for with OCHC, LLC for loans in the amounts of $631 each of the mentioned dates. The notes carry interest at 12% per annum. The holder has the right to convert principal of the notes and accrued interest into Common shares at a rate of $0.50 per share or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. The total amount of these notes and the accrued interest were converted during the nine-month period ending September 30, 2019 with the balance of $0 owed.

~~Munti Consulting, LLC~~

On October 3, 2018 and December 19, 2018, the Company entered into convertible promissory notes for with Munti Consulting, LLC for loans in the amounts of $35,000 and 10,000. The notes carry interest at 10% per annum. The holder has the right to convert principal of the notes and accrued interest into Common shares at a rate of $0.50 per share or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. The total amount of these notes and the accrued interest were converted during the nine-month period ending September 30, 2019 with the balance of $0 owed.

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Mike Zaman

As of December 31, 2019, the Company owed Mike Zaman a total of $760 and remaining accrued interest of $3,503. The balance of $760 was paid on January 13, 2020 and the remaining accrued interest of $3,503 were not converted as of March 31, 2020.

Montse Zaman

On ~~November 30, 2017 and January 19, 2018~~March 25, 2020, the Company entered into a convertible promissory ~~notes~~note with ~~Mike~~Montse Zaman ~~for loans~~ in the amount of ~~$1,000 and $450, respectively.~~$5,000. The ~~balance on the $1,000~~ note ~~was $17 on September 30, 2019. The notes carry~~carries interest at 12% per annum. The holder has the right to convert principal of the note and accrued interest into Common shares at a rate of $0.50 per share or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. $3,011 of the notes were paid and none of the remaining notes were converted as of September 30, 2019 and had a balance of $760 as of September 30, 2019.shares.

~~Montse Zaman~~Willy Ariel Saint-Hilaire

On ~~June 7, 2018,~~February 27, 2020, the Company entered into ~~convertible~~a promissory note with ~~Montse Zaman for loan~~Willy Ariel Saint-Hilaire in the amount of ~~$760.~~$14,500. The ~~balance on~~note carries interest at 12% per annum.

On March 8, 2020, the Company entered into a promissory note ~~is $293.The~~with Willy Ariel Saint--Hilaire in the amounts of $1,581. The notes carry interest at 12% per annum.

On March 24, 2020, the Company entered into promissory notes with Willy Ariel Saint-Hilaire in the amounts of $500, $400, and $652. The ~~holder has the right to convert principal of the~~ notes ~~and accrued~~carry interest ~~into Common shares~~ at ~~a rate of $0.50~~12% per share or receive cash. At the time of the issuance of these notes, the conversion price was less than the trading price of the stock. The note matured on June 7, 2019 and has been fully paid as of September 30, 2019 and had a balance of $0 at September 30, 2019.annum.

NOTE 6 – COMMITMENTS AND CONTINGENCIES

The Company is obligated for payments under related party notes payable and automobile lease payments.

The ~~company~~Company agreed to pay the automobile lease of $395 a month, on a month to month basis and can be cancelled at any ~~time. The Company reevaluates their obligation~~time but expects to continue lease payments for the full 2020 year.

On February 13, 2020, Munti Consulting LLC was issued a warrant at a price of $0.000025 per share ($25 total) to purchase 1,000,000 shares of common stock at the ~~end~~exercise price of ~~each quarter~~$0.60 per share. Exercisable after the first (1st) anniversary of the date of filing of the first Form S-1 filed with the U.S. Securities and ~~determines if they will continue paying~~Exchange Commission after the ~~lease on a month to month basis. The payment~~issuance of this ~~lease~~Warrant.

On March 13, 2020, BBCKQK Trust Kevin Wiltz was ~~terminated in February~~issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

On March 13, 2020, Willy Ariel Saint--Hilaire was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

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NOTE 7 – RELATED PARTY TRANSACTIONS

The Company is provided office space by one of the officers and directors at no charge. The Company believes that this office space is sufficient for its needs for the foreseeable future.

~~OCHC LLC total notes payable of $3,155 was converted to restricted shares of common stock during March of 2019 at a rate of $0.50 per share, as stated within the terms of the agreement.~~

On January ~~8, 2019, Mr. Cantor resigned. On December 18, 2019, his 300,000 restricted shares of common stock were returned to the Company.~~

~~As of September 30, 2019, the company recognized $50,000 of related party revenue for nine months of Advertising services for client during July 1, 2018 through April 1, 2019.~~

~~As of September 30, 2019,~~13, 2020, the Company ~~had a~~paid the remaining payable balance due to Mike Zaman of ~~$293 to Montse Zaman, director was paid in August of 2019~~$760 for expenses paid on behalf of the Company. ~~The holder has~~

During the ~~right to convert principal of~~period ended March 31, 2020, the note and accrued interest into Common shares at a rate of $0.50 per share or receive cash. At the time of the issuance of payables, the conversion price was less than the trading price of the stock. The Company recorded ~~a discount for~~ the ~~beneficial conversion feature~~forgiveness of ~~the notes, which has been amortized over the life of the note using the straight-line method.~~

~~As of September 30, 2019, the Company had a~~$7,200 accounts payable ~~of $760~~rent balance due to Mike Zaman, director for expenses paid on behalf of the Company. The holder has the right to convert principal of the note and accrued interest into Common shares at a rate of $0.50 per share or receive cash. At the time of the issuance of payables, the conversion price was less than the trading price of the stock. The Company recorded a discount for the beneficial conversion feature of the notes, which has been amortized over the life of the note using the straight-line method.

~~As of September 30, 2019, Mike Zaman has forgiven the Company $9,282 of interest owed in reference to his notes.~~Zaman.

The Company is periodically advanced operating funds from related parties with convertible notes payable. During the ~~nine~~three months ended ~~September 30, 2019, there were no~~March 31, 2020, total convertible notes from related ~~parties.~~parties was $5,000. The Company is also periodically advanced funds to cover account payables by direct payment of the account payables from related parties.

As of ~~September 30, 2019,~~March 31, 2020, the Company has a balance of ~~$87,416~~$22,892 of accounts and accrued expenses payable with related parties.

NOTE 8 – STOCK HOLDERS’ DEFICIT

Common Stock

The shares for cash proceeds were sold at the price of fifty cents $0.50 per share on the date of grant. Shares issued for notes were converted into shares of Common Stock at a conversion rate of fifty cents ($.50) per share per dollar ($1.00) owed. $18,756 common shares for services were committed to Vinoth Sambandam for issuance, and is reflected in the stockholders’ equity section as Common Stock Payable

During the ~~nine~~three months ending ~~September 30, 2019,~~March 31, 2020, the Company issued the following:

	•·	~~116,000~~40,000 common shares for cash proceeds of ~~$57,960.~~ $20,000.

	•·	~~113,377~~140,083 shares issued for ~~conversion~~settlement of ~~$56,895 in notes. The notes were converted in accordance with the terms~~stock payable due to Vinoth Sambandan for balance owed through December 31, 2019.

	·	204,933 shares issued for settlement of ~~the note and the Company recorded no gain or loss on the conversions.~~accounts payable due to Vinoth Sambandan for balance owed through December 31, 2019.

	·	8,336 shares issued for stock payable for 1st quarter 2020 due to Vinoth Sambandan.

	·	Stock payable for 1,500 shares for services rendered to third parties.

Equity Incentive Plan

The Company’s 2006 Equity Incentive Plan, as amended and restated (the “Equity Incentive Plan”), provides for grants of stock options as well as grants of stock, including restricted stock. Approximately 3.0 million shares of common stock are authorized for issuance under the Equity Incentive Plan, of which 3.0 million shares were available for issuance as of ~~September 30, 2019.~~March 31, 2020

Preferred Stock

The Company has designated 1,000 shares of its preferred stock as Series A Preferred Stock. Each share of Series A Preferred shall have no dividend, voting or other rights except for the right to elect Class I Directors. As of ~~September 30, 2019,~~March 31, 2020, the Company has 1,000 shares of Series A Preferred Stock ~~outstanding~~outstanding.

On February 13, 2020, the Company granted non-qualified stock options to purchase up to 1,000,000 shares of common stock at an exercise price of $0.60 per share. The option to purchase can be exercised at or after the date of the Company’s S1 registration filing of which date is yet to be determined.

On March 13, 2020, the Company granted non-qualified stock options to purchase up to 2,000,000 shares of common stock at an exercise price of $0.60 per share. The option to purchase can be exercised at or after the date of the Company’s S1 registration filing of which date is yet to be determined.

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NOTE 9 – INCOME TAXES

The Company follows ASC 740, Accounting for Income Taxes. During 2009, there was a change in control of the Company. Under section 382 of the Internal Revenue Code such a change in control negates much of the tax loss carry forward and deferred income tax. Deferred income taxes reflect the net tax effects of (a) temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry forwards. For federal income tax purposes, the Company uses the accrual basis of accounting, the same that is used for financial reporting purposes.

The Company did not have taxable income during ~~2019.~~2020.

The Company's deferred tax assets consisted of the following as of ~~September 30, 2019~~March 31, 2020 and December 31, ~~2018:~~2019:

	2019			2018			2020			2019
Net operating loss	$	418,961		$	399,821		$	426,743		$	416,916
Valuation allowance		(418,961	)		(399,821	)		(426,743	)		(416,916	)
Net deferred tax asset	$	-		$	-		$	-		$	-

As of ~~September 30, 2019,~~March 31, 2020, and December 31, ~~2018,~~2019, the Company's accumulated net operating loss carry forward was approximately ~~$1,995,051~~$2,032,111 and ~~$1,903,911~~$1,985,312 respectively and will begin to expire in the year 2032. The deferred tax assets have been adjusted to reflect the recently enacted corporate tax rate of 21%.

~~2014 Federal income tax returns have not been examined and reported upon by the Internal Revenue Service; returns of the years since 2014 are still open.~~

NOTE 10 – SUBSEQUENT EVENTS

~~Subsequent September 30, 2019, the company cancelled 300,000 shares and~~On April 1, 2020, Addicted 2 Marketing LLC was issued ~~an additional 54,000~~a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock ~~for cash proceeds~~at the exercise price of ~~$27,000~~$0.60 per share.

On April 28, 2020, the Company entered into a convertible promissory note with Montse Zaman in the amount of $4,000. The note carries interest at 12% per annum. The holder has the right to convert principal of the notes and accrued interest into Common Shares at a rate of $0.50 per share.

On April 28, 2020, Shahram Khial was issued a warrant at a price of ~~0.50~~$0.000025 per share ~~as follows:~~($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

On ~~December 18, 2019,~~April 29, 2020, the ~~company received 300,000~~Company issued 5,142 shares of common stock to Munti Consulting LLC for ~~cancelation from Steven Cantor, which~~interest owed that was ~~sent to transfer agent for cancellation January 3, 2020.~~subsequently forgiven.

On ~~November 26, 2019, Richard LeAndro paid $2,000 for 4,000 shares of~~April 30, 2020, the Company ~~and Willy Ariel Saint-Hilaire paid $5,000 for 10,000 shares.~~received a $4,000.00 loan from the Small Business Administration CARES program.

On ~~January 3,~~May 1, 2020, ~~Willy Ariel Saint-Hilaire purchased 40,000~~Mike Zaman was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of ~~Company~~common stock ~~for $20,000.~~at the exercise price of $0.60 per share.

On ~~January 27,~~May 1, 2020, Montse Zaman was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the ~~Company re-acquired from AVOT the online business iB2BGlobal.com and since company had not received the shares promised during the original sale.~~exercise price of $0.60 per share.

On ~~February~~May 4, 2020, Arnulfo Saucedo- Bardan was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

On May 7, 2020, Arnold F. Sock was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

On May 7, 2020 Rudy Chacon was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On May 7, 2020, Sadegh Salmassi was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

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On May 8, 2020, Glen J. Rineer was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On May 8, 2020 Barry Cohen was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On May 8, 2020, Malcom Ziman was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On May 8, 2020 Brett Matus was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On May 8, 2020 Brian Colvin was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

On May 8, 2020 Jacob Colvin was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On May 11, 2020, Mohammad Sadrolashrafi was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

On May 13, 2020 Steven A. Fishman was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On May 13, 2020 Wendell and Sharon Piper was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On May 15, 2020, the Company agreed to ~~issue 345,016~~issued 160,000 shares to ~~Vinoth Sambandam for~~Steven Cantor to settle compensation dispute. The settlement was accepted and executed on June 22, 2020.

On May 19, 2020 Joan R. Saint-Hilaire was issued a warrant at a price of ~~debt owed~~$0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share.

On May 19, 2020 Marvin A Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share.

On May 20, 2020 Willy Rafael Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On May 22, 2020, the Company entered into a convertible promissory note with Montse Zaman in the amount of $1,500. The note carries interest at 12% per annum. The holder has the right to convert principal of the notes and accrued interest into Common Shares at a rate of $0.50 per share.

On May 27, 2020 James Bobrik was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On May 28, 2020 Richard R Shehane was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On May 29, 2020 Ybelka Saint Hilaire was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On June 3, 2020, Jeffery Connell was issued a warrant at a price of $0.000025 per share ($2.50 total) to purchase 100,000 shares of common stock at the exercise price of $0.60 per share.

On June 8, 2020 Hassan M. Oji was issued a warrant at a price of $0.000025 per share ($7.50 total) to purchase 300,000 shares of common stock at the exercise price of $0.60 per share.

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On June 9, 2020 Kenneth Cornell Bosket was issued a warrant at a price of $0.000025 per share ($25.00 total) to purchase 1,000,000 shares of common stock at the exercise price of $0.60 per share.

On June 9, 2020, Kim Smith was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

On June 12, 2020 Violet Gewerter was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

On June 12, 2020, WYSH Investments purchased 20,000 shares of common stock at $0.50 per share at the purchase price of $10,000.

On June 16, 2020, Roy S Worbets was issued a warrant at a price of $0.000025 per share ($5.00) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On June 19, 2020, Elvis E. Saint-Hilaire was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On June 30, 2020, Chris Knudsen was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On July 1, 2020, Theresa Kitt was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share..

On July 1, 2020, Donald Kitt was issued a warrant at a price of $0.000025 per share ($5.00 total) to purchase 200,000 shares of common stock at the exercise price of $0.60 per share.

On July 3, 2020, Jonathan Dawson purchased 3,000 shares of common stock at $0.50 per share at the purchase price of $1,500.

On July 3, 2020, Lloyd Check III purchased 4,000 shares of common stock at $0.50 per share at the purchase price of $2,000.

On July 3, 2020, Glen Rineer purchased 8,000 shares of common stock at $0.50 per share at the purchase price of $4,000.

On July 3, 2020, Hayden Dawson purchased 2,000 shares of common stock at $0.50 per share at the purchase of $2,000.

On July 3, 2020, Diversified Unlimited agreed to the conversion of $3,000 accounts payable balance for services rendered ~~through December 31, 2019. Actual~~thru June 30, 2020 for common stock. The balance of $3,000 will be replaced with the issuance of Common Stock shares at a rate of $0.50 per share for total of 6,000 shares to be issued. The shares have not been issued ~~by Transfer Agent~~ as of filing date.

On July 10, 2020, Shahram Khial was issued a warrant at a price of $0.000025 per share ($12.50 total) to purchase 500,000 shares of common stock at the exercise price of $0.60 per share.

Management has evaluated subsequent events as of the date of the ~~Consolidated~~ Financial Statements and has determined that all events are disclosed herein.

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ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS

The following discussion and analysis should be read in conjunction with our ~~Consolidated~~ Financial Statements and the notes thereto, set forth in Item 8. “Financial Statements” as set forth in our Annual Report on Form 10-K for the year ended December 31, ~~2018,~~2019, and the Condensed Consolidated Financial Statements and notes thereto included in Part I of this Quarterly Report on Form 10-Q. The following discussion may contain forward looking statements. For additional information, see “Disclosure Regarding Forward Looking Statements” in Part I of this Quarterly Report on Form 10-Q.

OVERVIEW

Crown Equity Holdings Inc. (“Crown Equity”) was incorporated in August 1995 in Nevada. The Company is offering its services to companies seeking to become public entities in the United States. It has launched a website, www.crownequityholdings.com, which offers its services in a wide range of fields. The Company provides various consulting services to companies and individuals dealing with corporate structure and operations globally. The Company also provides public relations and news dissemination for publicly and privately held companies.

In December, 2010, the Company formed two wholly owned subsidiaries Crown Tele Services, Inc. and

CRWE Direct, Inc. Crown Tele Services, Inc. was formed to provide voice over internet (“VoIP”) services to clients at a competitive price and Crown Direct, Inc. was formed to provide direct sales to customers. Both entities had minimum sales during the quarter.

In March, 2011, the Company formed a wholly owned subsidiary CRWE Real Estate, Inc. as a subsidiary to engage in potential real estate holdings. The entity had minimal activity during the quarter.

The Company has focused its primary vision to using its network of websites to provide advertising and marketing services, as a worldwide online media advertising publisher, dedicated to the distribution of quality branding information. The Company offers Internet media-driven advertising services, which cover and connect a wide range of marketing specialties, as well as search engine optimization for clients interested in online media awareness. As part of its operations, the Company has utilized the services of software and hardware technicians in developing its websites and adding additional websites. This allows the Company to disseminate news and press releases for its customers as well as general news and financial information on a much bigger scale than it did previously. The Company markets its services to companies seeking market awareness of them and the services or goods that they offer. The Company then publishes information concerning these companies on its many websites

Crown Equity’s office is located at 11226 Pentland Downs Street, Las Vegas, NV 89141.

As of ~~September 30, 2019,~~March 31, 2020 Crown Equity had no paid employees and was utilizing the services of ~~one~~two independent ~~contractor~~contractors and the following three officers, Mike Zaman, Kenneth Bosket, ~~Arnulfo Saucedo-Bardan~~Montse Zaman and ~~Mike Zaman.~~Vinoth Sambandam.

RESULTS OF OPERATIONS

Three months Ended ~~September 30, 2019~~March 31, 2020 Compared to the Three months ~~Ended September 30, 2018~~March 31, 2019

For the three months ended ~~September 30, 2019,~~March 31, 2020, revenues were ~~$419~~$577 and ~~$1,226~~$682 for the same period in ~~2018.~~2019.

~~The decrease in revenues was primarily due to the Company not having any IT services revenue during~~Revenues for the three months ended ~~September 30, 2019~~March 31, 2020 was relatively consistent compared to the same period in ~~2018.~~2019.

Operating expenses were ~~$50,029~~$51,428 for the three months ended ~~September 30, 2019~~March 31,2020 and ~~$138,448~~$40,954 for the same period in ~~2018 for a decrease of $88,419~~2019. Increase in operating expenses was primarily due to increase in web site development ~~expenses.~~expense and accounting expense. Other expenses for the three month period ended ~~September 30, 2019~~March 31, 2020 were ~~$3,644~~$426,987 and ~~$5,988~~$17,157 for the same quarter in ~~2018.~~2019. The ~~decrease~~increase in other expenses was due to recoding of loss on shares issued to settle accounts payable.

The holders of convertible promissory notes have the right to convert principal and accrued interest ~~expense being $1,528 higher and the $0 of amortization of the beneficial conversion feature related for the convertible notes issued for which there was $3,882 in 2018.~~into Common shares or receive cash.

Interest expense for the three months ended ~~September 30,~~March 31, 2020 and 2019 was $3,700 and ~~2018 was $3,644 and $2,116,~~$4,839, respectively.

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~~Nine months Ended September 30, 2019 Compared to the Nine months Ended September 30, 2018~~

~~For the nine months ended September 30, 2019, revenues were $53,464 and $10,012 for the same period in 2018.~~

~~The increase in revenues was due to a related party client that we provided advertisement services for over a period of 9 months from July 1, 2018 through April 1, 2019.~~

Operating expenses were $132,313 for the nine months ended September 30, 2019 and $228,501for the same period in 2018 for a decrease of $96,188 due to less noncash compensation expense. Other expenses for the nine months period ended September 30, 2019 were $51,211 and of $18,702 for the same quarter in 2018. The increase was due to interest expense being $4,416 higher and the $38,920 of amortization of the beneficial conversion feature related for the convertible notes issued for which there was $10,827 in 2018.

~~Interest expense for the nine months ended September 30, 2019 and 2018 was $12,291 and $7,875, respectively.~~

LIQUIDITY AND CAPITAL RESOURCES

As of ~~September 30, 2019,~~March 31, 2020, Crown Equity had current assets of ~~$7,324~~$3,260 and current liabilities of ~~$324,563~~$277,735 resulting in working capital deficit of ~~$317,239.~~$274,475. Net cash used by operating activities for the ~~nine~~three months ended ~~September 30, 2019~~March 31, 2020 was ~~$50,315~~$16,741 compared to net cash used of ~~$7,687~~$12,700 for the same period in 2018. The increase in operating cash used resulted from a net loss of approximately $130,060, offset mainly by non-cash compensation of $26,454, and amortization of a beneficial conversion feature of $38,920 in the current six months ending period.2019.

Net cash used in investing activities was zero for the ~~nine~~three months ended ~~September 30, 2019~~March 31, 2020 and ~~2018.~~2019.

Net cash provided by financing activities during the ~~nine~~three months ended ~~September 30, 2019~~March 31, 2020 was ~~$44,345~~$19,004 compared to net cash provided of ~~$7,915~~$986 in ~~2018.~~2019. For the ~~nine~~three months ended ~~September 30, 2019,~~March 31, 2020, we paid ~~$3,011~~$760 on related party notes payable and ~~$10,604~~$0 on third party notes payable. We also sold ~~$57,960~~40,000 shares of common stock for ~~cash.~~$20,000.

Our existing capital may not be sufficient to meet Crown Equity’s cash needs, including the costs of compliance with the continuing reporting requirements of the Securities Exchange Act of 1934, as amended. This condition raises substantial doubt as to Crown Equity’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if Crown Equity is unable to continue as a going concern.

ITEM 3:3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a “smaller reporting company” as defined by Item 12b-2 of the securities exchange act of 1934 (the “exchange act”) and are not requires to provide information required under this Item.

ITEM 4: CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

Based on their evaluation of our disclosure controls and procedures(as defined in Rule 13a-15e under the Securities Exchange Act of 1934 the “Exchange Act”), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this quarterly report on Form 10-Q such disclosure controls and procedures were not effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms because of the identification of material weaknesses in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures. The material weaknesses relate to the lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by an external consultant with no oversight by a professional with accounting expertise. Our CEO and CFO also do not possess accounting expertise and our company does not have an audit committee. These material weaknesses are due to the company’s lack of working capital to hire additional staff. To remedy this material weakness, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

ITEM 1:1: LEGAL PROCEEDINGS.

For information regarding legal proceedings, see Note 7, “Commitments and Contingencies – Legal Matters” in the Notes to our Condensed Consolidated Financial Statements set forth in Part I, Item 1 of this Quarterly Report on Form 10-Q, which is incorporated herein by reference.

ITEM 1A:1A: RISK FACTORS.

There have been no material changes to Crown Equity’s risk factors as previously disclosed in our most recent 10-K filing for the year ended December 31, ~~2018.~~2019.

ITEM 2: SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

During the ~~nine~~three months ended ~~September 30, 2019,~~March 31, 2020, Crown Equity ~~229,377~~393,352 issued shares for cash, settlement of AP and ~~notes.~~common stock subscribed for services.

ITEM 3: DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4:4: MINE SAFETY INFORMATION.

None

ITEM 5:5: OTHER INFORMATION.

None

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ITEM 66: EXHIBITS~~: EXHIBITS~~

EXHIBIT 31.1		Certification of Principal Executive Officer

EXHIBIT 31.2		Certification of Principal Financial Officer

EXHIBIT 32.1		Certification of Compliance to Sarbanes-Oxley

EXHIBIT 32.2		Certification of Compliance to Sarbanes-Oxley

101.INS **		XBRL Instance Document

101.SCH **		XBRL Taxonomy Extension Schema Document

101.CAL **		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF **		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB **		XBRL Taxonomy Extension Label Linkbase Document

101.PRE **		XBRL Taxonomy Extension Presentation Linkbase Document

~~_____________~~ ____________

XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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~~SIGNA~~SIGNATURES~~TURES~~

In accordance with the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CROWN EQUITY HOLDINGS INC.

Date: ~~March 24,~~July 14, 2020	By:	/s/ Mike Zaman
		Mike Zaman, CEO

	By:	/s/ Kenneth Bosket
		Kenneth Bosket, CFO

	Sept 30, 2019			Dec 31, 2018
Net operating loss	$	418,961		$	399,821
Valuation allowance	$	(418,961	)		(399,821	)
Net deferred tax asset		-			-